Australian Superannuation Fund investment in agriculture
27 April 2015 | BDO Media Release
AUSTRALIAN SUPERANNUATION FUND INVESTMENT IN AGRICULTURE 2014/15
The importance of the agriculture sector
Our agriculture industry plays a major role in the success of our economy and, very importantly, our growth as a nation.
To ensure the industry is well placed to meet this growing demand, Australian agriculture requires active investment at both a domestic and international level.The majority of existing investment has either been debt funded or is received from international investors. The lack of domestic investment presents an exciting opportunity for the superannuation fund industry to consider agricultural entities as viable investment options.
Superannuation funds and agriculture - the opportunities are boundless
Australian superannuation funds represent a significant investment force. Total asset value amounts to $1.93 trillion as of 31 December 2014 according to official figures from the Australian Prudential Regulation Authority.
Given the prominence and importance of the agriculture sector to the Australian economy, it would seem like a viable area for investment. To date, limited investment has been made by superannuation funds. This posed a few questions that we wanted to delve into a bit further and understand.
The rationale behind the report
The report was established to:
- Determine the level of superannuation fund investment in agricultural assets; and
- Understand the current perception towards superannuation fund investment in the agricultural sector.
BDO has a genuine commitment to the agricultural industry. Our internal Food and Agribusiness industry sector group is made up of industry experts who attend industry briefings, contribute thought leadership to the industry and actively support industry stakeholders.
Members of our Sector Group attend industry conferences such as Global AgInvest New York, Global AgInvest Singapore, Australian Farm Institute, Rabobank’s F20, Australian Agribusiness Association, Rural Press Club and The Australian Global Food Forum.
Click here to download the report.